Wave of deals expected as private equity eyes orthopaedic practices
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WH
According to a Healthcare Dive post dated Oct. 25, 2019:
Private equity investment firms are setting their sights on orthopaedic care as federal regulators and the industry at large look to move more of these treatments away from hospitals and into outpatient settings. Healthcare experts are predicting a surge of private equity deals in practices that perform hip and knee replacements in the coming months as transactions are finalized.
"A full-time orthopedic surgeon generates an average of $2,800,000 (in 2016 data) a year on behalf of an affiliated hospital," states
David Fater, Chief Executive Officer at
ALDA & Associates International in Boca Raton. "So, the hospitals have a deeply seated economic reason to preserve their referral stream."
From the perspective of the private equity firm, a successful strategy "has to be to go after the leading practice in a geographic area," according to Mr. Fater, a former C-level executive of a public company that focused on musculoskeletal.
"
That serves as the foundation for add-on practices in the same geographic region creating critical mass. Then, the entity can build ambulatory surgery centers, if they don't already have one. This is the greatest fear of hospitals in that they will lose the revenue
."
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What does cable news do to your brain? A neurosurgeon explains
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WH
Marc Arginteanu, MD writes in a
KevinMD post on
10.25.19:
The availability of up to the minute information, presented 24/7/365, could assist a democratic society in making the best choices in determining its future. That was the promise of cable news. Unfortunately, cable news has fallen short of its potential and has led to the further polarization of America. More than that, it has changed the way your brain works. Not for the better!
WIM
According to the author:
Brain science supports the notion that intellectual bubbles, such as those created by cable news, are bad for society. Citizens are intellectually impoverished by the absence of input from those with different life experiences and different perspectives.
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Trump administration delays start of new primary care payment model to 2021
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WH
Robert King reports in a
Fierce Healthcare post dated
Oct.24:
The
Trump administration will delay the start of the
Primary Care First payment model until 2021 after originally proposing a start date of 2020.
The Center for Medicare & Medicaid Innovation (CMMI) released Thursday the request for applications for the five-year model, which would use an innovative payment structure to reward physicians in smaller practices for value-based care. But the model, which will be offered across 26 regions, will now have a start date of 2021 for new participants as opposed to the 2020 start date when the model was originally proposed back in April
.
WIM
"The commencement of the Primary Care First payment model may have been delayed until 2021 but the application period is current - Oct. 24, 2019 to Jan. 22, 2020," states
Oyinkansola "Bukky" Ogunrinde, MHSA, Chief Practice Transformation Officer,
Funmi Healthcare Consulting. "While the shift to value-based care is inevitable, participation in any risk-based payment model by a practice should be given proper consideration including operational capacity, technological capability, financial sustainability and strategic alignment. This intermission provides an opportunity for practices to gauge their interests and conduct due practice assessments. In healthcare industry terms, 2021 will be around the corner soon," she adds.
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| About Us |
Florida Health Industry Week in Review is published every Monday by
FHIcommunications.
Each Monday morning, we share the top healthcare headlines of the previous week and summarize
What Happened (WH) and
Why It Matters (WIM).
To learn how you can join our team of editorial contributors, contact
Jeffrey Herschler
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